Travelodge, the budget hotel chain owned by Dubai International Capital (DCI), is to launch its first ‘recyclable’ hotel in London this year.

The 120-room property in Uxbridge, west London, will be built entirely using steel modules which resemble standard shipping containers.

Each module will comprise two rooms complete with bathrooms, wardrobes, carpeting and beds.

If successful, the group is planning to build up to half of its new hotels using the ready-made modules imported from China.

Travelodge aims to add 40 hotels a year until 2020.

According to Travelodge, modular build takes up to 25 per cent less time to construct and can cut overall costs by up to 10 per cent.

Travelodge is predicting it will save £10m a year over the next 12 years.

Paul Harvey, Travelodge’s director of property and development, said: “We see this method of construction as a viable way for us to achieve our ambitious growth targets.

The method also presents interesting recycling options given the steel containers can be reused or melted down.

DCI, the Middle East private equity firm, bought Travelodge from Permira in August 2006, for £675m.